CLA-2-86:OT:RR:NC:N1:106
Art Hurtado, Import/Export Manager
Amsted Rail Company, Inc
1700 Walnut Street
Granite City, IL 62040
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of Seal/Wear Ring Assembly from United States
Dear Mr. Hurtado:
In your letter dated October 06, 2011, you requested a ruling on the status of Seal/Wear Ring Assembly from United States under the NAFTA.
A wear ring of Chinese origin is pressed together with a U.S. made grease seal. The bore size of the wear ring is inspected before the pressing process. Pressing parts together allows for a quality inspection of both the wear ring and the seal. The equipment and labor is used to perform the pressing operation in Virginia.
The applicable subheading for the Seal/Wear Ring Assembly will be 8607.99.1000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Parts of railway or tramway locomotives or rolling stock: Other: For vehicles of heading 8605 or 8606, except brake regulators.”
General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b) and 12(c), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that
(b)For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as “goods originating in the territory of a NAFTA party” only if--
(ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that--
(A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or
(B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note;
The components when assembled in the U.S. form a new item of commerce.
Based on the facts provided, the goods described above qualify for NAFTA preferential treatment, as long as the Regional Value Requirements are met. The Wear Ring Assembly meets the requirements of HTSUS General Note 12(b)(ii)(A). The goods will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements including Regional Value Content requirements specified in General Note 12(t).
This ruling letter has not addressed the Regional Value Content (RVC) of the subject goods. If you desire a ruling regarding the RVC of your goods and their eligibility for NAFTA preferential treatment, provide the information noted in Section 181.93(b) of the Customs Regulations (19 CFR 181.93(b)), to U.S. Customs and Border Protection, Office of International Trade, Regulations and Rulings Mint Annex, 799 9th Street N.W., Washington, D.C. 20001-4501, along with a copy of this letter.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Matthew Sullivan at (646) 733-3013.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division